Key Takeaways:

  • Tether will allocate 15% of its net realized operating profits monthly toward Bitcoin.
  • What are other major contributors to USDT reserves?
  • The USDT market cap soared to a record high and flatlined.
Tether Becomes an Official Bitcoin Bull, Plans to Buy BTC Every Month

YEREVAN ( – On May 17, Tether, the platform behind the largest stablecoin USDT, announced it would strategically increase its Bitcoin reserves.

Tether will allocate into Bitcoin every month.

The official newsletter stated that the investment strategy aimed at further strengthening its reserves portfolio. 

Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits toward purchasing Bitcoin. These Bitcoin shall be considered on top of the minimum reserves assets that 100% back tether tokens.

read the letter

Moreover, Tether anticipates that the “current and future BTC holdings” in its reserves will not exceed the Shareholder Capital Cushion and will “further strengthen and diversify the reserves.”

As reflected in the Q1 assurance report, Tether already holds $1.5 billion in Bitcoin. Thus, the flagship crypto backs merely 1.83% of its near-$83 billion market cap. Paolo Ardoino, the CTO of Tether, asserted that the decision to invest in Bitcoin is “underpinned by its strength and potential as an investment asset.”

Also read: Tether Reports Record Profits In Its Q1 Attestation, Reveals BTC And Gold Holdings. 

Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.

said Ardoino.

Moreover, the assurance report mentioned Tether’s increased allocation towards the US Treasury Bills.

The asset category accounted for over $53 billion. In addition, overnight reverse repo agreements saw $7.5 billion of Tether’s allocation. The money market funds had the third highest allocation at $7.45 billion.

Tether's Q1 assertation report detailing various assets held by the firm. usdt bitcoin
Excerpt from Tether’s Q1 assurance report detailing various assets held by the firm. Source: Tether report.

Tether market cap flatlines after record high.

Meanwhile, Tether registered record profits in Q1. Due to the heightened demand, the USDT market cap soared to $82.8 billion on May 13, flatlining since.

Tether (USDT) market cap at record high. Source: bitcoin
Tether (USDT) market cap at a record high. Source:

Cryptocurrency veteran Gabor Gurbacs, the founder of the PointsVille service and long-term director of digital assets strategy at VanEck, attributed Tether’s success to its focus on precious metals, as the company holds $3.4 billion in gold reserves.

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